Kistos upbeat as Balder Future development peaks early
By Josh White
Date: Wednesday 10 Sep 2025
(Sharecast News) - Kistos said in an update on Wednesday that production from the Balder Future development had peaked ahead of schedule, underpinning its full-year guidance and strengthening near-term output.
The AIM-traded independent energy group said the Jotun FPSO came onstream on 22 June with all 14 subsea wells now producing in line with expectations.
Output from the vessel was running above 80,000 barrels of oil equivalent per day, alongside around 30,000 equivalent daily barrels from the Balder FPU and Ringhorne facilities, taking gross Balder area production past 110,000 equivalent barrels per day.
Kistos holds a 10% stake in the licence.
Work on Balder Phase V, comprising six new wells, is underway, with the first two expected online in the fourth quarter and the rest in 2026.
A Phase VI expansion, sanctioned in June, would target around 15 million barrels of oil equivalent with start-up due by end-2026.
Elsewhere, output from the Q10-A field was lower in the first half due to natural decline and an extended shutdown of the TAQA-operated P15-D platform, though that resumed in mid-July.
At the Greater Laggan Area, production met expectations, with the imminent start-up of Shell's Victory gas field set to deliver operating cost savings.
Kistos added that TotalEnergies had retained its 40% interest after partner Prax entered administration.
A final investment decision on reinstating the Hole House gas storage facility was expected later this quarter, potentially increasing capacity by 63%.
The company reaffirmed full-year production guidance of 8,000 to 9,000 barrels of oil equivalent per day, noting that daily rates reached 16,000 equivalent daily barrels on 8 September.
Cash balances stood at $104m at 30 June, down from $143m at year-end, reflecting investment in Balder Future, while net debt was $86m.
"With our partner Var, we set out a very clear priority at the beginning of the year to deliver the Balder Future development project," said executive chairman Andrew Austin.
"Not only have we achieved first oil by the half-year-end, but we have also accelerated the production ramp-up to reach peak production well ahead of schedule.
"The additional 8,000 boepd net that Balder Future is now contributing adds substantial near-term production and, with the installation of the Jotun FPSO and associated infrastructure, further near-term development of the Balder Area is now ongoing, unlocking additional value at a low cost with greater certainty."
He added that the group remained focused on value-accretive acquisitions, both in and outside the North Sea, but only on terms that delivered balance to the portfolio and enhanced returns for shareholders.
At 1149 BST, shares in Kistos Holdings were up 1.29% at 164.6p.
Reporting by Josh White for Sharecast.com.
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